Enersys (ENS)
Debt-to-capital ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 801,965 | 1,041,990 | 1,243,000 | 969,618 | 1,104,730 |
| Total stockholders’ equity | US$ in thousands | 1,753,640 | 1,600,280 | 1,489,370 | 1,539,760 | 1,300,520 |
| Debt-to-capital ratio | 0.31 | 0.39 | 0.45 | 0.39 | 0.46 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $801,965K ÷ ($801,965K + $1,753,640K)
= 0.31
The debt-to-capital ratio of Enersys has shown a fluctuating trend over the past five years. It decreased from 0.46 in March 2020 to 0.31 in March 2024 with some variability in between. This indicates that Enersys has been able to reduce its reliance on debt financing relative to its total capital structure over the years.
A decreasing trend in the debt-to-capital ratio could signal improved financial health and reduced financial risk for the company. It suggests that Enersys may be managing its debt levels more prudently and/or increasing its equity base to support its operations and growth.
However, the ratio should be interpreted in the context of the industry average and compared with the company's historical performance. A lower debt-to-capital ratio could also imply a conservative capital structure, which may limit the company's ability to pursue growth opportunities or leverage potential tax benefits associated with debt.
Overall, while the decreasing trend in Enersys' debt-to-capital ratio is generally positive, further analysis of the company's capital structure, overall financial health, and strategic objectives would be necessary to provide a more comprehensive assessment.
Peer comparison
Mar 31, 2024